KRX Gears Up for Bitcoin and Ether ETFs as Regulation Lags
Korea Exchange (KRX), operator of South Korea’s securities and derivatives markets, said it plans to expand its range of investment products—including crypto exchange-traded funds (ETFs) and derivatives—as part of a broader effort to modernize the country’s capital markets.
At a ceremony marking the first trading day of the year, KRX chairman Jeong Eun-bo stated the exchange is operationally prepared to support crypto ETFs, while regulators continue to assess whether such products are permissible under existing securities regulations.
Jeong linked the initiative to addressing the “Korea discount,” where domestic equities trade at lower valuations than global peers. He noted the crypto market shows a different pattern, with Bitcoin often trading at a premium on local platforms compared with overseas exchanges.
He also referenced parallel initiatives, including a gradual transition toward 24-hour trading and upgrades to digital finance infrastructure.
Although the remarks did not include new regulatory approvals, they highlighted increasing coordination between market operators and policymakers as authorities evaluate how to incorporate crypto into the traditional financial system.
Infrastructure prepared, regulatory status unresolved
KRX’s comments come as South Korean regulators continue to review the legal status of crypto-based investment products. Under current rules, crypto assets are not classified as eligible underlying assets for securities, effectively blocking crypto-focused ETFs despite growing investor demand.
The Financial Services Commission has previously said it is examining potential reforms through a dedicated crypto committee, including whether digital assets could be recognized within the framework of the Capital Markets Act.
While those decisions are pending, KRX’s messaging indicates the market infrastructure is ready. By publicly signaling readiness to list and trade crypto-linked products, the exchange is positioning to move quickly once regulatory barriers are lifted.
Momentum for crypto ETFs grows, approvals still on hold
Support for crypto ETFs has increased across the financial and political landscape over the past year. In February, the head of the Korea Financial Investment Association (KOFIA) said the industry would push to list Bitcoin and Ether ETFs domestically to address demand from investors seeking regulated exposure to digital assets.
The issue later entered mainstream politics ahead of the June presidential election. In May, Lee Jae-myung, then the Democratic Party’s presidential front-runner, pledged to approve spot crypto ETFs if elected. Lee subsequently won the election.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
